Utility license fee increase for electricity and natural gas

In June 2024, City Council approved a 3% increase to utility license fees in the city's consolidated fee schedule that will take effect July 1, 2024. Utility license fees are imposed on utility providers that use the public rights-of-way within Milwaukie for their infrastructure.  

With this change, private electric and natural gas utilities are now charged for their use of the right of way in alignment with our city utilities, which already contribute 8% of gross revenues to the city’s General Fund. 

Why was this increase needed? 

  • The utility license fees for electricity and natural gas are a critical revenue source that supports the city's General Fund, of which about one-third directly funds public safety services and a further 20% funds the maintenance, operations, and engineering of public infrastructure and facilities. 
  • These fees have not increased since 2016. 
  • General Fund revenues have stagnated in recent years and are not keeping up with rising costs. This is due to a variety of factors, including property tax limitations, inflation, and increased demand for city services as behavioral health, public safety, and climate-related challenges rise.  Without additional revenue streams, Milwaukie’s current financial circumstances—even with this additional utility license revenue—will likely require service reductions in future budget cycles. 
  • Generating additional revenue was not an action the city took lightly. In the 2025-2026 biennial budget, the city reduced or held expenses steady wherever possible despite rising service demands. This budget also limited other utility fee increases wherever possible—the average city resident’s utility bill (water, wastewater, stormwater and transportation) is only due to increase by 0.59% or approximately $0.82 per month in 2024.   

How big of an impact will this have on my household budget? 

Typically, electric and gas utilities will pass through some of this increased fee to their customers. Because of this change, the typical residential PGE bill is expected to increase by around $5.41 a month. The typical residential NW Natural bill is expected to increase by around $2.77 per month.    

Where does this money go? 

The revenue collected from utility license fees pays for core services supported by the General Fund. This increase will specifically help cover rising costs for police, maintenance and operations of public facilities, and technological improvements. It also will stabilize the General Fund through the next budget cycle, helping ensure other General Fund services like the city’s climate and equity programs can continue. 

What can I do to lower my energy costs?